Doha, Qatar: According to industry sources, Qatar’s most promising market is the “affordable” housing sector.
Researchers in the country believe that despite the fall in rents during the second and third quarters of the year, most of the supply is catering to middle and high-income households adding that low-income households earning less than QR14,000 on a monthly basis, have limited housing options and in most cases, have to share single unit with multiple households.
“We have developments like Madinatna and Ezdan properties to cater to this group. However, with the rising costs of living, we have observed families are not willing to spend more than 30 percent of their income on rent,” Anum Hasan, Head of Research Qatar at ValuStrat told The Peninsula in an interview.
Post-World Cup, the sector anticipated a drop in rental rates. However, they remained the same during the first quarter of 2023. The official noted that in 2022, due to Eskan leases, there was a temporary decline.
She explained that “Landlords had to reduce rents and offer more incentives to increase occupancy. They were successful in the most preferable areas to live, like The Pearl, Lusail, Al Sadd, etc. However, secondary locations suffered as households shifted from there. We expect this cycle to continue if more properties are handed over in the market.”
According to market experts, nearly 25,000 units are currently under construction and under design till 2027.
“The existing gap and substantial projects in the pipeline indicate the imbalance might continue to lead to market corrections in the short and medium term, Hasan said.
With increasing realty projects and investments in the market, Qatar’s tourism sector could witness a huge boom.
The authorities recently released a report stating that the country welcomed more than 2.56 million visitors as of August 25, 2023, an increase of 157 percent compared to the same period in 2022.
Anum Hasan remarked, “If they (Qatar) can exceed 3 million in 2023, it will be an achievement because, based on historical trends, countries that hosted the World Cup in the past experienced an annual fall in foreign tourists post the year in which the event was held.”
Earlier the Qatari officials stated that the country is poised to a robust growth by the decade’s end with a GDP growth of over 7 percent, eventuating on the arrivals of 6 million individuals.
“However, even if we assume Qatar achieves 3 million visitors in 2023, it will take 20 percent annual growth between 2024 and 2030 to reach 6 million by the end of 2030,” she added.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q2 2023
